Icahn tussles with Family Dollar board

Matthews, N.C. – Activist investor Carl Icahn, who recently became Family Dollar’s largest shareholder with a 9.4% stake, wants the retail company to put itself on the block – pronto. The response from Family Dollar’s board: No.

In a letter to Family Dollar ceo Howard Levine that Icahn disclosed to the SEC yesterday, he asserted that the 8,100-unit retailer has persistently underperformed against its competitors. “Consolidation in this space is inevitable and we believe that now is not the time for continued passivity. We believe the company has been in limbo for far too long,” Icahn wrote.

Late yesterday, Family Dollar responded with a public statement of its own:

“As previously announced the company is undertaking an in-depth business review to identify opportunities to strengthen our value proposition, increase operational efficiencies and improve financial performance. While this business review is ongoing, we continue to take immediate, strategic actions as appropriate to improve our performance. We are confident that these steps will position Family Dollar to deliver stronger returns for our shareholders.”

Earlier this month, Family Dollar adopted a poison pill plan after Icahn disclosed his majority stake in the company.